Will electric cars loose 90% of their value?

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electric carsThere are many problems facing the new batteries that will be placed into next generation electric vehicles.  Among the top concerns are their questionable range, the high cost of replacement, and the unknown life spans.

The truth is that those that purchase electric cars, which are already more expensive than petrol equivalents, will not know how long their vehicles can travel in the real world and various road conditions before they need to be recharged.

However, producers are sure that the batteries will make it for at least a several years instead of just a few months, but just how many years past the first few is hard to tell.  Even worse, those who purchase electric cars need to be aware of the fact that at some point the new replacement battery will most likely cost a few thousand pounds.

The auto ‘bible,’ Glass’s, issued a warning to consumers this week that electric cars may depreciate in value by about 90% over the course of five years.  This is sizable problem if you look at the example of a Nissan Leaf that may cost £30,000 new, but after five years will only be worth £3,000.

In fact, Glass’s predicts that EV batteries that are past their warranty of sixty months will cause the car to be worth a small fraction of its value.  The prediction of Glass’s is that the batteries will last around eight years although there are variables that could influence this life span.

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